Is Apple still losing ground to Google and Microsoft?

Both Google and Microsoft have invested heavily in AI for years. The pioneering work between Google's DeepMind and Google Brain, coupled with its own TPU chip and vast cloud infrastructure, became a leader before the generation AI hit the mainstream. The Gemini AI model is already deeply embedded in Google Search, Workspace, Android, and Pixel devices.

Meanwhile, Microsoft has placed a strategic bet on OpenAI and integrated AI tools throughout its product ecosystem. Copilot and AI in Microsoft 365 are burned into Windows 11 and Azure Cloud, turning Microsoft into an AI powerhouse that is particularly serious for businesses.

Apple's answer to AI moments is Apple Intelligence, a set of tools that focus on device processing, privacy, and real use cases. From email rewriting and notification summaries to photo editing and Siri (ultimately), Apple is leaning towards a “Goldilocks” strategy. Not ambitious, not too basic.

But there's a catch. Many of Apple's most expected AI features that have not arrived until 2026 are Siri 2.0, which has deep context awareness. Off-device ChatGPT access is required, like AI-generated images through the image playground. Even Apple's privacy-focused approach means fewer major breakthroughs in generated AI compared to its rivals.

One reason behind Apple is that it later enters the generation AI race, lacking the massive AI infrastructure from Google or Microsoft. The report suggests that Apple relies on Google's cloud and TPU for model training. Its AI chip and data center functionality are not just on the same scale.

Furthermore, many Apple AI features are supported only on the latest Apple silicon chips except for many users. In contrast, Google's Gemini and Microsoft's co-pilot run on a wider range of devices and operating systems.

Where Apple Shines is practical, everyday AI tools that blend seamlessly into the user experience. For example, an update to Visual Intelligence allows users to interact with screenshots and search the web. This is the same as Google's “Circle to search” but is integrated into iOS.

Apple also offers localized tasks like text rewriting, photo editing, and Genmoji, demonstrating that it can be done even if the market slows down.

Unlike its competitors that push Cloud Heavy AI, Apple invests in efficient, energy-conscious on-device AI. As AI models shrink and improve (such as Google's Gemma and Microsoft's Phi), Apple's approach can resonate with consumers who are aware of the environment and people who are cautious about data privacy.

Apple's AI delays may already have results. iPhone sales fell 5% in the last quarter, and Canada's lawsuit accused Apple of misleading ads.

Consumers who have purchased the iPhone 16 are hoping that advanced AI is on standby, but Samsung's Galaxy S25 Ultra already offers similar AI features via Google.

Still, Apple's market share has not collapsed. iOS still beat Android in many regions, and Macos continues to cut Windows' advantage. However, if Apple is not sure its AI strategy is competitive, it could lead to a rift.

In a sense, yes. Apple's AI ecosystem lacks the scale, speed, and versatility of Google and Microsoft products. In particular, they are cloud AI, enterprise integration, and AI assistants. But that's not all bad news. If Apple plays its strengths (seamless UX, privacy, and power on the device), it could potentially beat the users in the long run.

Actual testing will take place in 2026, when Apple is expected to eventually deploy a full Siri upgrade and wider generation AI capabilities. Until then, there is a risk that the company appears to be stuck in the second (or third) gear, but rivals are moving ahead.